, that is if it incurs a deficit in order to be expansionary, it will finance some of the deficit by printing money. Conversely if it runs a surplus, it will use part of that surplus to retire money. But from an analytical point of view, and from the point of view of getting at the issue that concerns the counter-revolution, it is important to consider fiscal policy and monetary policy separately, to consider each operating by itself. The Keynesians regarded as a clear implication of their position the proposition that fiscal policy by itself is important in affecting the level of income that a